There are different types of franchising expansion: on the one hand there is franchisee expansion and on the other a franchise brand can penetrate new markets.
To a certain extent, these two types of expansion are dependent on each other, because only with the help of additional franchisees can additional sales markets be acquired.
A good partner manager in the franchise headquarters itself is therefore very important. He drives the expansion from the head office. This article will enlighten you!
What role do franchisees play in an expansion?
Franchisees are the blood of a franchise system. They spread the brand, penetrate new markets, are in direct contact with customers and are therefore the face of the franchise brand. The partner manager at the franchise headquarters is the main contact person for the franchisees.
It is he who conducts the first discussions and ultimately sells the license to the interested parties by signing the franchise agreement. The partner manager is at your side when it comes to setting up and developing the franchise location. And he should therefore advise you that the best idea when it comes to expansion is the courage to grow!
The multi-unit license: Take the step to make a big difference!
Most franchisees usually start with a single license, which entitles them to develop a single location. Studies and surveys have shown that a branch can be economically very profitable for franchisees!
For this reason, franchisors should encourage their franchisees to purchase a multi-unit franchise license so that they can operate their own small branch network.
Once a franchisee has successfully established his or her own location, he or she knows what’s going on, the brand, and how the concept works. It therefore makes sense to take the next step.
Expand as a franchisee and become a top dog!
Expansion via multi-unit franchising ensures that the franchise system can continue to grow and that there is less fluctuation among franchisees. If franchisees establish further locations, areas can be developed more quickly and sustainably.
And if a franchisee is looking for expansion, he will be more motivated and successful.
Branchisation naturally also pays off for franchisees:
They are economically more stable with several branches and can hold their own better against the competition. And that also ensures that the franchisees’ revenues increase. And of course everyone benefits: the franchisees, the franchisor and the brand.